Argentina Threatens Criminal Lawsuit Against Israeli Firm Over Falklands Oil Project

Argentina is escalating its dispute with Israel's Navitas Petroleum over oil exploration near the Falkland Islands, which Argentina claims as its own territory, despite British sovereignty. The Financial Times reported that Argentina's government announced its intention to file a criminal lawsuit against Navitas and its subsidiaries, as well as project executives.

According to an official government statement, Foreign Minister Pablo Cairano will initiate the legal action. Navitas holds a 65% stake in the Sea Lion oil field, considered one of the world's largest, with production slated to begin in 2028. Argentina's President Javier Milei's office stated the project violates Argentine law, which prohibits resource exploitation in the islands without national approval.

Last week, Milei declared in a televised address that sanctions would be imposed on companies involved in the project. The government statement emphasized that "the defense of sovereignty must be expressed through all legal and institutional channels available to the government to prevent a third party from carrying out activities that use resources belonging to Argentina." While the specific court was not named, local media speculate it will be the Federal Court in Buenos Aires.

Navitas declined to comment to the Financial Times. However, in a joint statement with its British partner, Rockhopper, the company asserted that "recent developments are not expected to have a material impact" on the project or its timeline. The threat of criminal charges represents the most severe action Argentina has taken regarding the Sea Lion field, which analysts estimate could triple the islands' GDP.

The lawsuit's impact on the oil project remains uncertain. Milei has recently intensified the sovereignty dispute with Britain, a stance analysts suggest is aimed at bolstering his domestic approval ratings amid economic slowdown. His claims have reportedly received support from U.S. President Donald Trump, who has hinted at a potential shift in America's neutral position on the matter.